property development trust vs company

[BobG]

Hi fellow investors

I'm embarking on a development project (6 units) and want to know what structure will be best to do the development.

some info :

1. ill purchase the land and do the DA myself then look for a partner to JV with to do the build.

2. I'm a PAYG employee on 80k per year. no spouse, no children to distribute profits to.

3. My portion of expected profit from developed is about 300k.

4. I want to minimize tax and add protection

shall i set up a trust and / or a company ?

hope someone can help out with some initial advice before i go to see an accountant. many thanks

 

[Terry_w]

Hi fellow investors

I'm embarking on a development project (6 units) and want to know what structure will be best to do the development.

some info :

1. ill purchase the land and do the DA myself then look for a partner to JV with to do the build.

2. I'm a PAYG employee on 80k per year. no spouse, no children to distribute profits to.

3. My portion of expected profit from developed is about 300k.

4. I want to minimize tax and add protection

shall i set up a trust and / or a company ?

hope someone can help out with some initial advice before i go to see an accountant. many thanks

This is something you need legal advice on. It is a how long is this string type question with no fixed answer.

Even if you decide you need a discretionary trust then it is a matter of deciding how to structure the trust, who plays what roles, how the appointor should be structured, how the trustee should be structured, what are the effects this has on borrowing, on succession etc.

 

[RPI]

There are a multitude of ways to structure something like this. A lot will depend on you and the individual jv partner's situations.

Would need way more info than that and there are many things that can go wrong, eg your asset protection can be sound legally and then be ruined by structuring your finance incorrectly.

Good idea to put a team together of a finance broker, lawyer and accountant who can help you ensure you have all aspects covered.

D

 

[Paul@PFI]

Hi fellow investors

I'm embarking on a development project (6 units) and want to know what structure will be best to do the development.
...................
shall i set up a trust and / or a company ?

hope someone can help out with some initial advice before i go to see an accountant. many thanks

Terry is spot on. I would suggest your accountant isnt qualified to give the correct advice. He will address some tax issues and probably miss the land tax, stamp duty, partitioning issues, estate planning, corporations law and other concerns. Thats before trust law is even mentioned.

My best initial advice is call Terry. I'm an accountant and that's what I would do.